Chapter 11 Post-Settlement Governance Entity
Post-Settlement Governance Entity Contents Introduction 253 Developing a governance entity 253 Crown requirements 253 Deed of Settlement requirements post-settlement governance entities 253 Crown principles 254 Negotiations with Crown on a post-settlement governance entity 254 Alternative governance entities including existing entities 254 Post governance entity options 254 Structural features of preferred post-settlement entities 255 Common clauses in post-settlement governance entity 255 Māori Fisheries Act 256 Group trusts 256 Kaumātua committees 256 Five year plan 256 Separation of key functions 256 Custodian/nominee trustee 256 Post-settlement governance entity review 256 Models not supported by the Crown 256 Māori Trust Boards 256 Statutory body post-governance entity 257 Charitable Trusts 257 Tables 1 Governance entities by name, entity type and entity title 255 Appendices 1 Post-settlement governance entity Table 1 Common post-settlement governance entity clauses 261 Table 2 Post-settlement governance entity schedule 280 2 Membership of claimant group, claimant group register 283 3 Elections of trustees 287 4 Proceedings of trustees 297 5 Procedure for passing special resolution 303
Key points Read Twenty Questions on Governance in the Red Book (page 74), discuss them within the mandated body and agree on how to address the questions Begin discussions with Crown officials very early in the negotiations, at the same time start scoping the postsettlement governance entity Use the representation that suits your iwi tikanga if your iwi has always been hapū-based, hapū are probably the best representation (rather than marae-based or another system). In other cases an iwi whānui system may be appropriate Obtain copies of governance entity constitutions similar to the options you are considering no point wasting time and funds reinventing the wheel Remember The governance entity constitution sets out how representatives must behave this document cannot be ratified then ignored Do you have a mandated iwi organisation (established under the Māori Fisheries Act 2004) in place? can its function be combined with the post-settlement governance entity? does your claimant group need (and can it afford) more than one Governance entity? You must present a proposal for your governance entity to the Crown. They must accept it before claimant group members can ratify it Keep claimant group members informed and consult them while developing the governance entity they will then be more likely to own it The governance entity must be ratified and established before settlement legislation is introduced to Parliament
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 253 Introduction The purpose of a post-settlement governance entity is to hold and manage the settlement redress transferred to the claimant group under the Deed of Settlement. The Crown will not complete settlement until a single, overall governance entity has been legally established, and ratified by the claimant group. This chapter: discusses the Crown requirements of governance entities details the key features of these entities, and looks at governance models the Crown does not support and explains why the Crown does not support them. Developing a governance entity The sooner the mandated body begins to work on setting up a governance entity the better. In the early stages of a settlement negotiation most effort is directed towards achieving the AiP then the Deed of Settlement. However, work on a governance entity and constitution options should start during the early stages of AiP negotiations. The mandated body will have to use its judgement to determine what effort goes where, and when. Keeping claimants informed Early in its planning the mandated body must agree when and how to share its preferred governance entity model or models with the claimant group. Withholding such essential information to the end of the settlement process risks claimant group dissatisfaction or even legal challenge. Claimant group members are more likely to understand and accept the proposed governance entity if they have plenty of time to consider the options and give feedback to the mandated body. Early involvement increases the likelihood that the claimant group will buy-into and accept the final governance entity proposal. Start investigating governance entity options about the time the Terms of Negotiation is signed. By then the communications strategy for keeping the claimant group up to date on negotiation progress should be in place. The mandated body could use the same communication channels to explain the governance entity options and get claimant group feedback. Ratification of the governance entity is a separate process that occurs later (see Ratification chapter). Crown requirements The Crown s key minimum requirements for a governance entity are set out in the Red Book (page 71). They include that the governance entity must: adequately represent all members of the claimant group have transparent decision-making procedures have transparent dispute resolution procedures be fully accountable to the whole claimant group ensure the beneficiaries of the settlement and the beneficiaries of the governance entity (the claimant group) are identical when settlement redress is transferred from the Crown, and be ratified by the claimant group. Crown approval of proposed governance entity Based on the first principles of representation, these are sound requirements to ensure a robust and sustainable governance entity. Whatever the final form of the governance entity, the Minister in Charge of Treaty of Waitangi Negotiations and the Minister of Māori Affairs are jointly responsible for approving it prior to claimant group ratification. Deed of Settlement requirements postsettlement governance entities Key Crown requirements are typically restated in the Deed of Settlement. The Deed will provide that the Crown must be satisfied (and has notified the mandated body it is satisfied) the governance entity will: be appropriate to receive the settlement redress have a structure that provides for - claimant group representation - transparent decision-making processes - transparent dispute resolution processes - accountability to claimant group members, and have been ratified by the claimant group (by a process agreed in writing by the mandated body and the Crown) as appropriate to receive the redress provided under the Deed of Settlement. Timeframe for establishing governance entity The Deed of Settlement will set a time after the Deed is signed within which the claimant group needs to ratify and establish a governance entity. This varies between Deeds of Settlement but is usually between six and nine months. Settlement legislation will not be introduced into Parliament until a governance entity has been established. If a mandated body has started work on its preferred governance entity, there should be no reason why it could not be ratified and established within six to eight weeks
Crown Forestry Rental Trust 254 Post-Settlement Governance Entity of signing the Deed of Settlement. An obvious benefit in an early introduction of settlement legislation is that it speeds up the overall settlement process. Timeframe for ratifying a governance entity The mandated body needs to consider if it wishes to ratify the Deed of Settlement and governance entity at the same time. This saves time and money. For further discussion, see the Ratification chapter. Crown principles The Crown s requirements are underlined and explained in detail in Twenty Questions on governance in the Red Book (page 74). Its key principles are: representation accountability, and transparency. The mandated body must become familiar with the questions, and cover the detailed issues raised in the communication material it prepares and distributes prior to and during ratification. Office of Treaty Settlements and Te Puni Kōkiri officials will assess the governance entity against these criteria. Negotiations with the Crown on a postsettlement governance entity In practical terms, to gain Crown acceptance of the proposed governance entity model the mandated body needs to start working with the Crown at an early stage of developing the governance entity model do not leave this to the last minute. The mandated body should propose a governance entity work-stream to the Crown when the Terms of Negotiation is signed. Crown s right of veto over governance entity Mandated bodies may baulk at the Crown s ability to veto a final governance entity model. However as its final sign off is so fundamental, it is counter-productive for a mandated body to try and thwart Crown participation in establishing the governance entity. The Crown takes a keen interest in the establishment of governance entities and will want to actively discuss details of the proposal. Be prepared to set aside considerable time for discussion. assets) must now be formally considered and approved by the beneficiaries of the governance entity. This was not required in the Ngāi Tahu and Waikato-Tainui settlements. Working with officials It is important that the mandated body consults closely with Crown officials from Office of Treaty Settlements and Te Puni Kōkiri much as they did with the Deed of Mandate to establish the governance entity model. This can take time, so at the outset, agree specific deadlines with officials so all parties have a clear understanding of who is doing what and when. Alternative governance entities In recent years there has been discussion and debate within Government about the suitability of existing entities governance entities for Māori. Alternative governance models have been mooted including the proposals of the Law Commission (Law Commission (2006) Waka Umanga: a proposed law for Māori governance entities. Wellington) and Te Puni Kōkiri Waka Umanga (Māori Corporations) Bill. If the model becomes law, the mandated body will need to consider it when determining its own options for governance entities. Post-settlement governance entity options In the past the Crown accepted a range of legal entities as post-settlement governance entities, including: common law trust statutory body Ahu Whenua Trust, under Te Ture Whenua Māori Land Act 1993 charitable trust Whanau Trust, under Te Ture Whenua Māori Land Act 1993. Table 1 below lists acceptable governance entities adopted at the time of settlement, by name, year, entity type and entity title. Note that Te Kauhanganui o Waikato was established post-settlement. Major transactions clause Some Crown requirements are more prescriptive than they used to be. For instance the Crown now require that all governance entities have a Major Transactions clause. This means that any major transactions (transactions worth more than half the value of the governance entity s
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 255 Settlement Governance entity type Governance entity title Ngāti Mutunga (2005) Common law trust Te Runanga o Ngāti Mutunga Te Arawa Lakes (2005) Common law trust Te Arawa Lakes Trust Ngā Raurū (2003) Common law trust Te Kāhui o Raurū Ngāti Tuwharetoa (Bay of Plenty) (2003) Common law trust Ngāti Tuwharetoa (Bay of Plenty) Settlement Trust Ngāti Awa (2003) Statutory body Te Rūnanga o Ngāti Awa Ngāti Tama (2001) Common law trust Te Rūnanga o Ngāti Tama Ngāti Ruanui (2001) Common law trust Te Rūnanga o Ngāti Ruanui Trust Te Uri o Hau (2000) Common law trust Te Uri o Hau Settlement Trust Pouakani (1999) Common law trust Te Pūtahitanga o Ngā Ara Trust Ngāi Tahu (1997) Statutory body Te Rūnanga o Ngāi Tahu Waikato-Tainui (1995) Incorporated Society/Charitable Trust Te Kauhanganui o Waikato Incorporated Ngāti Rangiteaorere (1993) Whenua Topu Trust Te Ngae Farm Trust Ngāti Whakaue (1993) Ahu whenua Trust Pukeroa-Oruawhata Trust Table 11.1: Governance entities by name, entity type and entity title Under current Crown policy not all the above entities are now suitable. The most common form of entity, a common law trust is the most acceptable to the Crown. However, the mandated body should not feel constrained by this and may wish to investigate other entity models such as cooperative companies or statutory bodies. In two instances the Crown accepted statutory bodies as post-settlement governance entities. Te Rūnanga o Ngāi Tahu and Te Rūnanga o Ngāti Awa were established by their own Acts of Parliament which also effected the replacement of a prior Māori (statutory) Trust Board. In both cases the mandated bodies sought to establish their entity by private legislation. This option is costly and complex and not favoured by the Crown. Further entity types not favoured by the Crown are discussed in page 11 8 of this chapter. Structural features of preferred post-settlement entities The Crown s governance entity requirements are limited to setting out certain key principles rather than the detailed rules under which it is desirable for a governance entity to operate. Nevertheless, there are a number of legal, commercial and structural features the mandated body should consider incorporating into its governance entity. A range of features and clauses used in past settlements which trustees have found of great assistance are presented here to help those claimant groups who have yet to consider and establish their post-settlement governance entity. Common clauses in post-settlement governance entities Schedule 1, Table 1 (Appendix 1 to this chapter) presents examples of common clauses from a range of recent postsettlement governance entities: Te Arawa Lakes, Ngāti Mutunga, Ngāti Ruanui and Ngāti Awa. The first column details the purpose, the next four columns name the four entities, and the final column is a standard clause column. All examples were accepted by the Crown and vetted by the mandated bodies and their advisors. The document for Te Arawa Lakes, Ngāti Mutunga, and Ngāti Awa are similar but Ngāti Ruanui has marked differences. The Ngāti Ruanui document has not been used for any template clauses. In the template clause column: a blank [ ] shows where the clause refers to clauses in the document, or an x shows where numbers (for example, days of notice, number of trustees etc) are required.
Crown Forestry Rental Trust 256 Post-Settlement Governance Entity Schedule 1, Table 2, examines and notes the differences between Schedules for three governance entity documents: Te Arawa Lakes, Ngāti Mutunga, and Ngāti Awa (see Appendix 1). The next four schedules, 2, 3, 4, 5 (see Appendices 2 5) set out rules a governance entity must establish for: Membership of Claimant Group and Claimant Group Register (Schedule Two) Elections of Trustees (Schedule Three) Proceedings of Trustees (Schedule Four) Procedure for passing Special Resolution (Schedule Five). Other factors and features for a mandated body to consider when designing its preferred settlement entity briefly discussed below include: the Māori Fisheries Act 2004, Group trusts, Kaumātua committees, Five year plans, Separation of key functions, Custodian/nominee trustee, and Post-governance entity review. Māori Fisheries Act The Māori Fisheries Act 2004 sets out criteria with which iwi must comply before an entity (Mandated Iwi Organisation) will be recognised by Te Ohu Kai Moana to receive Māori fisheries assets. If a Mandated Iwi Organisation has not been established the mandated body should consider whether the kaupapa required in the constitution of a Mandated Iwi Organisation can be carried through to the postsettlement governance entity. The united ownership and management of both Treaty Settlement assets and Fisheries assets would appear to be in the best interests of the claimant group. Even if a Mandated Iwi Organisation is already in existence, there may be ways to amalgamate the activities and/or operations of both entities to provide more efficiencies for the claimant group. Group trusts One feature common to the Ngāti Mutunga and Ngāti Awa documents is the establishment of the Group Development Trust and an Investment Trust. Establishing these trusts and appointing trustees for both are dealt with under clauses 6 7 of both documents. Kaumatua committees All four governance entities provide for kaumātua committees to be established to provide non-binding advice to the elected trustees. Five-year plans The Te Arawa Lakes, Ngāti Mutunga, and Ngāti Awa documents all provide for annual and five year plans to be prepared and approved even though this is not a Crown requirement. There is a similar provision in the Ngāti Ruanui governance entity document. Separation of key functions All four governance entity examples provide for the establishment of separate companies to administer assets on behalf of the claimant group. There are clear provisions separating the management of these companies from the governance of the parent governance entity, including: all companies (including The Company) and other entities within the Group shall be governed by their respective boards and the role of the governance entity in respect of those companies and other entities shall be limited to the exercise of the rights conferred on the governance entity as shareholder, or (as applicable) appointer, and beneficiary of the relevant entity. The importance of this separation clause for the future performance of the governance entity cannot be overstated. Unfortunately it is very tempting for trustees, once the governance entities are established, to interfere in the day-to-day operations of their companies. This is one of the highest risks that a board needs to manage. The provision for separating management and governance will mitigate this risk. Custodian/nominee trustee The Te Arawa Lakes, Ngāti Mutunga, and Ngāti Awa governance entity rules provide for a custodian or nominee trustee. This clause overcomes problems of multiple trustee ownership of governance entity assets. It allows for a more efficient form of asset holding and will reduce transfer costs and associated risks when trustee elections occur. Post-settlement governance entity review The Te Arawa Lakes and Ngāti Awa documents provide for a review of the governance entity after a defined time. This is an important clause. It provides for a formal review of the performance of the governance entity and the opportunity to address issues and problems in an open and transparent manner. Models not supported by the Crown There is a range of governance entities the Crown does not support to receive the settlement assets. Māori Trust Boards The key reasons for the Crown not finding Māori Trust
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 257 Boards acceptable as governance entities are that: accountability (dual) is to the Minister of Māori Affairs as well as to members of the claimant group beneficiaries of a Māori Trust Board do not have a beneficial interest in or a right to use or benefit from any property of a Māori Trust Board. Before a Māori Trust Board can meet Crown criteria for a governance entity, amendments to sections of the Māori Trust Boards Act 1955 would be required to align Trust Board accountability mechanisms with the accountability requirements of the claimant group. Claimants may be reluctant to support this owing to historical associations of Māori Trust Boards with the Crown, and doing do so will require costly, time consuming private legislation. In any event, the Trust Board may have more assets than the settlement package will contribute, so unbundling the board may be complicated and unwarranted. However, there may be scope for a Māori Trust Board or its assets to be part of an overall governance entity structure. For example, the Te Arawa Lakes Settlement Act 2006 provides for both a winding up of the Arawa Māori Trust Board and a tax neutral transfer of the existing assets and liabilities of the Trust Board into the governance entity, the Te Arawa Lakes Trust. This reflected the claimant group s recognition that there was no economic, cultural or political sense in having two separate bodies. The action was taken after careful and detailed consideration of all relevant issues. Statutory body post-governance entity Te Rūnanga o Ngāi Tahu is Ngāi Tahu s post-settlement governance entity, established by its own Act of Parliament, Te Rūnanga o Ngāi Tahu Act 1996. Te Rūnanga o Ngāi Tahu was established before a Deed of Settlement was initialled and ratified, and was in place and used as the mandated body in the substantive settlement negotiations. Te Rūnanga o Ngāti Awa was established by Te Rūnanga o Ngāti Awa Act 2005 as a body corporate or statutory body. This legislation was passed and was contemporaneous with but separate from, the Te Rūnanga o Ngāti Awa Settlement Act 2005. In both cases the mandated bodies sought the establishment of their entity by way of private legislation. The Crown will not agree to the settlement legislation being used to establish a statutory body governance entity even if that is the wish of the mandated body. Using settlement legislation would mean suspending Standing Orders in the House. If a mandated body requires a statutory body governance entity they have to initiate that via private legislation. This adds significant time and cost to the settlement process. The main complications with promulgating statutory bodies as governance entities through the House are: it requires a Member of Parliament to sponsor the proposed private bill Parliament must be convinced that there is no other way of achieving the aims of the legislation within existing legislation If subsequent changes are needed to the private legislation the claimant group will have to persuade Parliament to make those amendments select committee examination and possible recommendations for change the timetable for private bills is not within government or claimant group control. (This may lead to a delay in settlement since settlement legislation is not introduced until the governance entity is established.) potential cost of drafting, managing and professional advice, and public scrutiny. Statutory body remains preferred option If a statutory body remained the preferred option for the mandated body, the claimant group would need to drive this very early in the process. This may mean that the statutory body is already in place early in the negotiations process, for example, as for Ngāi Tahu. There are significant timing issues associated with that option. Charitable trusts The Crown does not consider charitable trusts a suitable post-settlement governance entity because: it may be difficult to meet the public benefit test where beneficiaries are pre-determined by whakapapa or contractual relationship it requires a charitable purpose it cannot distribute funds to members for noncharitable purposes individual entitlements are excluded unless consistent with a charitable purpose, and the Attorney-General has a statutory role in enforcing the charitable functions of the trust. Some governance entities have investigated amending their constitution to become a charitable trust for tax purposes. It is not known if they have completed the process.
Post-Settlement Governance Entity Appendix 1
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 261 Schedule 1 Post-Settlement Governance Entity Table 1: Common post-settlement governances entity clauses four examples Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard clause [Note: These standard clauses are examples only and do not purport to be Crown policy] Trust established 2.1 2.1 2.1 2.1 The trustees acknowledge that they hold the Governance Entity assets upon the trusts and with the powers set out in the Trust Deed. Trust representative 2.2 2.2 2.2 2.2 The Governance Entity shall be the representative for [the claimant group] for [specified matters dependant upon the Deed of Settlement]. Powers of trust 2.3 2.2, 5.1 2.3 The trustees on behalf of the Governance Entity shall be capable of holding real and personal property, of suing and being sued, and shall have all of the rights, powers and privileges of a natural person with the intention that they shall, in their capacity as trustees, have the fullest powers necessary to do all such things that they consider necessary in their sole discretion to perform or otherwise carry out the Governance Entity purposes. Objects and purpose of trust Restrictions on major transactions Appointments, Powers and Meetings of trustees 2.4 3 2.4, 4 2.2 2.5 2.5 2.5 2.5 Notwithstanding [powers of Governance Entity] the Governance Entity and any entity which is a member of [the claimant group] must not enter into a Major Transaction unless that Major Transaction: (a) is approved by way of Special Resolution in accordance with [ ]; (b) Is contingent upon approval by way of Special Resolution. 3 3 3 Appointment in accordance with Second Schedule: The trustees from time to time of the Trust shall be appointed to office in accordance with the rules set out in the Trust Deed. Trustees to control Trust affairs: Subject to any requirements imposed by this Trust Deed, the Deed of Settlement and the Settlement Act the trustees shall control and supervise the business and affairs in such a manner as they, in their sole discretion see fit. Proceedings of Trustees: Except as otherwise provided in the Trust Deed the proceedings and other affairs shall be conducted in accordance with the rules set out in the Trust Deed.
Crown Forestry Rental Trust 262 Appendix 1 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Kaumātua committee General manager and other employees Trustees not to be employed 4 [Ngā Kōeke o Te Arawa] 8 [Kaunihera Kau-mātua o Ngāti Ruanui] 4 [Te Kāhui Kaumātua] 4 [Te Kāhui Kaumātua and Te Whakaruruhau] Appointment of [Kaumātua committee]: The Governance Entity may appoint from time to time a Kaumātua committee on such terms of appointment, and subject to such rules, regulations, meeting procedures and processes, as may be prescribed by the Governance Entity from time to time. The Governance Entity shall when making appointments take into consideration the desirability of the Kaumatua committee being broadly representative of [the claimant group]. Role of Kaumātua committee: The Kaumatua committee will on request from the Governance Entity be responsible for advising the Governance Entity on matters relating to the tikanga, reo, kawa, kōrero and whakapapa of [the claimant group] provided that nothing in this Trust Deed shall be deemed or construed so as to make the seeking or following of advice obtained from the Kaumatua committee binding upon the Governance Entity. Trustees not to be Members: For the avoidance of doubt, a Trustee may not contemporaneously with his or her holding office as Trustee be appointed to or remain part of the Kaumatua committee. 5 5 5 Governance Entity to appoint General Manager: The Governance Entity shall appoint a General Manager to manage the day to day administration of the Governance Entity including without limitation the implementation of the Governance Entity s planning, reporting and monitoring obligations. Delegations to General Manager: The General Manager shall be responsible for the employment of all other employees of the Governance Entity and shall exercise such other powers and discretions as are delegated to him or her by the Governance Entity from time to time. 5.3 2.2 2.3 [Certain employees prohibited from holding office; Tumuaki or Deputy Tumuaki may be Director] 5.3 5.3 Trustees not to be employed: A Trustee may not hold the position of General Manager nor may a Trustee be an employee of the Governance Entity.
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 263 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Establishment of company 6 [TAML] Schedule 5 [NRMG Group] PSGE to have 100% ownership of company 6 6 Establishment of Company and Trusts: In receiving, controlling, and supervising the use of the Governance Entity s Assets on behalf of the claimant group, whether pursuant to the Deed of Settlement, the Settlement Act or otherwise, the Governance Entity shall establish and oversee the operations of The Company, [the Group Development Trust and the Investment Trust]. [Control of Trusts: The Governance Entity shall have and retain the power to appoint and remove the trustees of the Group Development Trust and the Investment Trust.] The Company: The Company, once established, shall as its objective and sole purpose manage those of the Governance Entity s Assets that are of a commercial nature, which the Company shall manage on a prudent, commercial and profitable basis and in doing so shall conduct or otherwise undertake all Commercial Activities of the [Claimant Group] Group, either itself or through any subsidiary established for that purpose, on behalf of and solely for the benefit of the Governance Entity in the furtherance of the Governance Entity s Purposes. Remuneration of directors and trustees: The Governance Entity shall determine the remuneration payable to any: (a) director of The Company; [(b) trustee of the Group Development Trust; (c) trustee of the Investment Trust;] and (d) trustee or director of any other member of the [Claimant Group] Group. No influence in determining remuneration: No Trustee receiving any remuneration referred to shall take part in any deliberations or proceedings relating to the payment or otherwise of that remuneration nor shall the Trustee in any way determine or materially influence directly or indirectly the nature or amount of that payment or the circumstances in which it is to be paid. 6.2 5.4 6.2 6.2 Ownership and Control of the Company: The Company shall be 100% owned and controlled by the Governance Entity.
Crown Forestry Rental Trust 264 Appendix 1 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Trust to monitor Assets held for claimant group Directors responsible for governance Appointment of Directors, Trustees Appointments with regard to skills and expertise 6.4 Schedule 5, 2.3 6.7 6.6 Governance Entity to monitor: In giving effect to the Governance Entity s Purposes the Governance Entity shall be responsible for monitoring and otherwise overseeing the activities of the Company, [the Group Development Trust and the Investment Trust]. The Governance Entity shall not conduct or otherwise undertake Commercial Activities, [Investment Activities or, in competition with the Group Development Trust, Group Development Activities]. The Governance Entity shall also exercise its ownership or other rights and interests in the Company [the Group Development Trust, the Investment Trust] in such a way as to promote the performance by the Company, [the Group Development Trust and the Investment Trust] of their respective objectives and respective sole purposes as set out in this Charter. 6.5 2.1 6.8 6.7 Assets held for [the Claimant Group]: All assets held and income derived by any member of the claimant group, including without limitation shall be held and derived for and on behalf of the Governance Entity. 6.6 11* 6.9 6.8 Directors responsible for governance: For the avoidance of doubt, and except as expressly provided by this Charter, all companies (including The Company) and other entities within the Group shall be governed by their respective boards and the role of the Governance Entity in respect of those companies and other entities shall be limited to the exercise of the rights conferred on the Governance Entity as shareholder, or (as applicable) appointor, and beneficiary of the relevant entity. 7 Schedule 5, 2 7 7 Appointment and removal of directors and trustees: The directors of The Company [and the trustees of the Group Development Trust and Investment Trust] shall be appointed and removed by the Governance Entity. Directors of the Company: There shall be not more than five (5) and not less than three (3) directors of the Company. A majority of the directors of the Company, must be Members of [the claimant group], although such directors need not be Trustees. 7.3 Schedule 5, 2.1* 7.5 7.4 Appointments with regard to skills and expertise: A director of The Company [and trustee of the Group Development Trust and Investment Trust] shall only be appointed if that person has the particular skills and expertise that are required of a member of the board to which the appointment relates and bearing in mind the activities that The Company, [the Group Development Trust or the Investment Trust] undertakes or is likely to undertake in the future and the mix of skills and expertise that is required on the relevant board.
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 265 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Rotation of directors Application of income: remit funds to trust Trustees may apply income as they see fit Payments out of income 7.4 7.6 7.5 Rotation of directors of The Company: x directors of The Company shall retire from office as at the date chosen for the annual general meeting of The Company in each year. The directors to retire shall be those who have been longest in office since their last appointment. However, in the case of directors who were last appointed on the same day, those to retire will be determined by agreement between those directors or, if agreement cannot be reached, by lot. Retiring directors will be eligible for reappointment. 8.1 8.1 8.1 Company to remit funds to the Governance Entity: The Company shall in each Income Year remit to the Governance Entity so much of the surplus income derived by The Company on behalf of the Governance Entity as is agreed between The Company and the Governance Entity having regard to: (a) the Company s objective and sole purpose in clause [ ] of this Charter and the desirability of retaining and reinvesting income to meet that objective and purpose; (b) the projected operating requirements of The Company and its subsidiaries as set out in their plans; and (c) the responsibilities and duties of the directors of The Company to comply with the requirements of the Companies Act 1993. 8.3 5.7, 5.9, 5.10 8.4 8.3 Trustees may apply income as they see fit: Except as required by [ ], and subject to any other requirements in this Charter, the Governance Entity may provide for the payment, application or appropriation, or decide to pay, apply or appropriate as much of the available income (including any funds remitted from the Company) in any Income Year as the Governance Entity in its sole discretion thinks fit for or towards the Governance Entity s Purposes. 8.4 5.7, 5.9, 5.10 8.5 8.4 Payments out of income: The Governance Entity may in making any decisions about the application of income in any Income Year, decide to have set aside, deducted from, or paid out of income such amounts as the Governance Entity in its discretion from time to time thinks fit, including: (a) as a reserve against losses and contingencies, and the Governance Entity may write off losses from time to time or resort to any reserve fund in mitigation of losses or for any other purpose; or (b) as a reserve to meet fluctuations of income in future years and other contingencies.
Crown Forestry Rental Trust 266 Appendix 1 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard clause Matters to consider in applying income Accumulation in six months where income not applied Trust to prepare annual and five year plans 8.5 5.10 [Hapū representatives have absolute discretion] 8.6 8.5 Matters to consider in applying income: In making any decision as to the application of the income in any Income Year, the governance entity shall, in exercising its discretion: (a) determine how much of the income should cease to be income and be added to and form part of the capital of the governance entity s assets, provided that the governance entity may not in the Income Year convert the entire income of the governance entity into capital; (b) endeavour to act fairly in considering the present and future needs and interests of all Members of the group. 8.6 5.8 8.7 Any income from any Income Year that is not paid or applied in accordance with [this clause] during or within the six months from the end of that Income Year shall be accumulated and any income so accumulated shall be added to and form part of the capital of the governance entity s Assets and shall be subject to the trusts and powers herein declared in respect of the capital of the Governance Entity s Assets. 9 9 9 Governance entity to prepare annual plan: The governance entity shall prepare no later than one month before the commencement of each Income Year an annual plan which specifies in respect of that Income Year the following information: (a) the strategic vision of the governance entity for the group; (b) the nature and scope of the activities proposed by the governance entity for the group in the performance of the governance entity s purposes; (c) the ratio of capital to total assets; (d) the performance targets and measurements by which performance of the group may be judged; (e) the manner in which it is proposed that projected income will be dealt with; and (f) any proposals for the ongoing management of the governance entity s assets having regard to the interests of all Members of the group. PSGE to prepare five year plan: The governance entity shall also produce within 12 months following the execution of this Charter, and update not less than every two years, a five year plan. Such a plan shall set out the longer term vision of the governance entity in respect of the matters referred to in clause [ ] and shall include a statement by the governance entity of the commercial, management and distribution policies that the governance entity intends to follow in respect of the governance entity Assets.
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 267 Purpose Te Arawa Annual reports, accounts and auditor Company plans and reports Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause 10 16* 10 10 Preparation of annual report: The governance entity must, within four months after the end of each Income Year, cause to be prepared an annual report on the affairs of the Group covering the accounting period ending at the end of that Income Year which includes a comparison of performance against Annual Plan, and Consolidated Financial Statements including a balance sheet and income and expenditure statement and notes to those documents so as to give a true and fair view of the financial affairs of the Group for that Income Year. The financial statements shall include as a separate item details of any remuneration or fees paid to any Trustee or any Trustee s firm (including without limitation any such payment to any Trustee as a director of the Company, [as a trustee of the Group Development Trust, or the Investment Trust,] or as a director or trustee of any other member of the Group) and details of any premiums paid in respect of Trustees indemnity insurance. Audit of financial statements: The governance entity must also ensure that the Consolidated Financial Statements for each Income Year are audited by a chartered accountant in public practice prior to the date for giving notice of the annual general meeting of the governance entity for the Income Year immediately following the Income Year to which the financial statements relate. Appointment of auditor: The auditor shall be appointed by the governance entity prior to the end of the Income Year to which the audit relates and, where possible, the fee of the auditor shall also be fixed at that time. No Trustee or employee of the governance entity (including any firm of which such a person is a member or employee) may be appointed as the auditor. 11 Schedule 5, 2.5 11 11 Group entities to prepare Plans and Statements of Intent: The governance entity shall procure that each of the Company, [the Group Development Trust and the Investment Trust] will: (a) within 2 months of the Settlement Date prepare a Statement of Intent setting out its long term objectives and the general principles by which it proposes to operate; (b) as required by the governance entity update the Statement of Intent to take into account changes in circumstances that may arise from time to time, including without limitation changes to the nature of its business and the business of any of its subsidiaries; (c) no later than 6 months following the Settlement Date prepare a 5 year plan, which shall be updated not less than every 2 years, and which sets out its medium term vision and the specific steps that it proposes to take during that period to fulfil the objectives and principles set out in the Statement of Intent referred to in paragraph (a) of this clause; (d) no later than 2 months following the completion of the 5 year plan referred to in paragraph (c) of this clause, and thereafter no later than 2 months before the commencement of each Income Year, prepare an annual plan setting out the steps to be taken in the relevant Income Year to meet its 5 year planning objectives and fulfil the objectives and principles of the Statement of Intent; (e) in addition to any normal reporting requirements, within 2 calendar months after the completion of the first, second and third quarter of each Income Year send to the governance entity reports on its operations and financial position together with an unaudited summary of financial results as at the end of that period (such reports to be in such form as the governance entity may require from time to time).
Crown Forestry Rental Trust 268 Appendix 1 Purpose Te Arawa Ngāti Ruanui Trust approval required Reports to comply with Companies Act 1993 Report to include comparison against plans Protection of sensitive information Ngāti Mutunga Ngāti Awa Standard Clause 11.2 11.2 11.2 Governance entity approval required: Prior to being implemented all Statements of Intent, five year plans and annual plans must be approved by the governance entity. Such approval shall be given in light of the governance entity s overall plans and policies in respect of the governance entity s Assets and the [Claimant Group] Group, and having regard to the specific roles of the Company, [the Group Development Trust, and the Investment Trust] as set out in clause [ ]. However, nothing in this clause shall allow the governance entity to give directions beyond approving or not approving any plan or Statement of Intent or otherwise exercising its powers as shareholder, appointor or beneficiary, with the intention that the directors of the Company, [the trustees of the Group Development Trust, or the trustees of the Investment Trust,] shall otherwise retain full discretion in respect of the implementation of the plans and Statements of Intent. 11.3 16.2* 11.3 11.3 Reports by The Company to comply with Companies Act 1993: The governance entity shall procure that all annual reports by the Company comply in all respects with the requirements of the Companies Act 1993, including without limitation: (a) the description required by section 211(1)(a) of the Companies Act 1993 of the nature of the business of the Company or any of its subsidiaries, or the classes of business in which the Company has an interest, whether as a shareholder of another company or otherwise; (b) the financial statements (or as appropriate group financial statements) for that Income Year completed and signed in accordance with the Financial Reporting Act 1993; (c) the auditor s report of the financial statements (or group financial statements) of the Company for that Income Year; but excluding the information required by section 211(1)(g) of the Companies Act 1993 where the PSGE so decides pursuant to clause [ ]. 11.4 11.5 11.5 Report to include comparison against plans: In addition to the matters set out in clause [ ], the governance entity shall procure that all reports by the Company, [the Group Development Trust and the Investment Trust] include a comparison of their performance against both their respective annual plans for that Income Year and their medium and longer term planning objectives (as set out in the 5 year plans and Statement of Intent). 11.5 13.8 11.6 11.6 Protection of Sensitive Information: For the avoidance of doubt, nothing in this clause [ ] limits or affects the rights of the governance entity, as shareholder in the Company, to agree pursuant to section 211(3) of the Companies Act 1993 not to include information in the annual report of the Company where the governance entity considers on reasonable grounds that the information is commercially or otherwise sensitive.
Aratohu Mō Ngā Rōpū Kaitono, Guide For Claimants Negotiating Treaty Settlements Post-Settlement Governance Entity 269 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Disclosure of plans, reports and minutes No disclosure of sensitive information Trust to hold AGM 12 12 12 Documents to be available for inspection: The governance entity shall hold at its offices and make available for inspection by any Member of the claimant group during normal business hours on any Business Day: (a) the Annual Report for each of the preceding three Income Years; (b) the Consolidated Financial Statements for the preceding three Income Years; (c) the Annual Plan; and (d) the Five Year Plan; (e) the Statements of Intent; (f) the minute book kept in accordance with clause [ ] of all decisions taken and business transacted at every annual general meeting and special general meeting; and (g) their own personal details on the Register. Costs of copying: Any Member of the claimant group shall be entitled to obtain copies of this information. However the governance entity shall also be entitled to recover at its discretion all reasonable copying or postage costs (if any). 13 17.4* 13 13 For the avoidance of doubt, but subject to the governance entity s reporting obligations in clauses [ ], the governance entity may at its sole discretion limit disclosure of any information about the activities or proposed activities of the governance entity and the [Claimant Group] Group which the governance entity considers on reasonable grounds to be commercially or otherwise sensitive. 14.1 Schedule 4, 1.2* 14.1 14.1 Governance entity to hold annual general meeting: The governance entity shall, no later than six calendar months after the end of each Income Year, and in any event no more than 15 months after the date of the last annual general meeting of the governance entity, hold a general meeting for the Members of Claimant Group, to be called its annual general meeting, and shall at that meeting: (a) report on the operations of the [Claimant Group] Group during the preceding Income Year; (b) present the Annual Report and duly audited Consolidated Financial Statements; (c) present the proposed Annual Plan; (d) announce the names of all newly appointed Trustees; (e) approve the appointment of the auditor for the next Income Year; (f) approve the Trustees remuneration; (g) undertake all other notified business; and (h) at the discretion of the Chairperson, undertake any other general business raised at that meeting.
Crown Forestry Rental Trust 270 Appendix 1 Purpose Te Arawa Ngāti Ruanui Ngāti Mutunga Ngāti Awa Standard Clause Approval of trustees remuneration Notice of AGM Requirements for special meetings 14.2 10.8* 14.2 14.2 Approval of Trustees remuneration: No remuneration will be paid to a Trustee in his or her capacity as a Trustee unless that remuneration has been authorised by a resolution of the Adult Members of the Claimant Group present at the annual general meeting. Each such resolution will express the remuneration to be paid to the Trustees as a monetary sum per annum payable either to all Trustees taken together or to any person who from time to time holds office as a Trustee. This clause does not apply to any remuneration paid to any Trustee in his or her capacity as a director of the Company, [a trustee of the Group Development Trust, a trustee of the Investment Trust,] or a director or trustee of any other member of the [Claimant Group] Group and that remuneration shall be determined by the Governance Entity pursuant to clauses [ ]. 14.3 [15 working days] 14.4 [written approval of chair and deputy chair; or majority of trustees; or 10% adult Members of Te Arawa] Schedule 4, 1.4 [20 working days] Schedule 5, 6.1 [written approval tumuaki or deputy tumuaki; or not less than 40% hapū representatives; or not less 10% registered beneficiaries] 14.3 [21 days] 14.3 [21 days] Notice of general meeting: The Governance Entity shall give not less than twentyone (21) days notice of the holding of the annual general meeting, such notice to be posted to all Adult Members of the claimant group at the last address shown for each such Adult Member of the claimant group on the Claimant Group Register. Notice of the meeting shall also be inserted prominently in appropriate major metropolitan newspapers circulating in New Zealand and in any provincial newspapers circulating in regions where the Governance Entity considers that a significant number of Members of the claimant group reside. All such notices shall contain: (a) the date, time and place of the meeting; (b) an agenda of matters to be discussed at the meeting; and (c) details of where copies of any information to be laid before the meeting may be inspected. 14.4 [written approval chair and deputy chair; or 3 trustees; or 10% registered beneficiaries] 14.4 [written approval of chair and deputy chair; or 5 representatives; or 10% registered beneficiaries provided that those Adult Members are registered with not less than 5 Hapū ] Notice of special meetings: In addition to the annual general meeting of the Governance Entity, the Governance Entity shall convene a special general meeting of the Governance Entity on the requisition of: (a) the Chairperson and Deputy Chairperson for the time being of the Governance Entity; or (b) any three (3) Trustees; or (c) ten percent (%) of Adult Members of claimant group. Notice of such a meeting shall be given in the same manner as for a notice of the annual general meeting and those requisitioning the meeting shall be required to provide a statement to the Governance Entity setting out the purposes for which the meeting has been requisitioned and the specific agenda items proposed for such a meeting. The Governance Entity shall not be required to give notice calling the meeting until such a statement with agenda items has been received.